Congratulations you just had a baby! The baby already takes after you and shows amazing business acumen. You want your baby to get an undergraduate degree and work for 3 years and then quit their job to get a Harvard MBA twenty-five years from now. The issue is this a 2- year program with a current annual cost of $50,000 and this cost is expected to grow 3.5% annually over the next 25 and 26 years. You wish to save up for your babys future MBA costs

using a tax-sheltered investment account expected to earn 6.5% compounded annually to make easier for baby to quit their job and get their MBA. Please answer the following questions.

2) How much would you have to deposit today in a single lump sum deposit in order to fund babys future expected MBA costs (assume your investment account will continue to earn 6.5% between year 1 and 2 of the program)?

3) The deposit in the previous question is a huge chuck of change. Instead, you decide it might be best to fund your babys MBA with a series of 25 equal annual deposits beginning today. What does this annual deposit need to be given the 6.5% expected annual compound return?

using excel functions